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HgCapital Trust PLC

HgCapital Trust plc Invest in Transporeon Group

HgCapital Trust plc (LON:HGT), today announced that it has agreed to invest in Transporeon Group, one of the world’s leading cloud-based logistics platforms.

The terms of the investment are not disclosed.

HgCapital Trust plc will invest approximately £35.0 million in Transporeon, with other institutional clients of Hg investing alongside the Company through the Hg8 Fund.

The Company, whose shares are listed on the London Stock Exchange, gives private and institutional investors the opportunity to participate in all Hg’s investments.

Note that these figures only relate to HgCapital Trust’s share of Hg’s overall investment in Transporeon.

Based on the 30 November 2018 NAV, the Company’s liquid resources available for future deployment, including all announced transactions, are estimated to be £121 million (16% of the pro-forma 30 November 2018 NAV of £777.2 million). In addition, the Company has access to an £80 million standby facility, which is currently undrawn. The investment will reduce the Company’s outstanding commitments to invest in Hg transactions over the next four to five years to approximately £412 million.

Hg invests in Transporeon Group

29th January 2019 Hg today announces that it has invested in Transporeon Group (“Transporeon” or “the Group”), one of the world’s leading cloud-based logistics platforms. TPG Capital (“TPG”), the global private equity platform of alternative asset firm TPG, exits its shareholding in Transporeon as part of the transaction. Terms are not disclosed.

Founded in 2000 and headquartered in Ulm, Germany, Transporeon is a cloud-based logistics platform with strong network effects, connecting a global network of over 1,000 shippers and almost 90,000 carriers, enabling them to source, communicate, collaborate and transact more efficiently, whilst also helping to lower CO2 emissions by up to 10% through the reduction of empty cargo trucks (backhauls).

Transporeon serves a global blue-chip and European enterprise customer base and Europe’s leading carrier network with more than 100,000 users across 100 countries, who use the Group’s software-as-a-service solutions and platform, which is available in 24 languages, for freight sourcing, carrier assignment, time slot management, visibility and market intelligence. Transporeon employs 600 people in nine locations around the world.

The investment, which will be made from the Hg8 fund, recognises Transporeon’s attractive business model characteristics, strong financial profile, highly experienced management team and leading position in leveraging the continuously growing network effect. The transaction represents another example of Hg’s focus on cloud-based software and network companies, providing software-as-a-service (SaaS) solutions to the business community.

Stefan Margolis, Justin von Simson and Jean-Baptiste Brian at Hg, said: “We have been tracking Transporeon for many years. We believe that it is a very unique platform, with significant further organic growth potential, at the forefront of freight industry digitalisation. Using its cloud-based technology solutions, Transporeon helps to reduce complexity and increase efficiency, in what is still a highly inefficient, large, fragmented global logistics market.”

Marc-Oliver Simon, co-founder and CEO of Transporeon said: “We’d like to thank TPG for their commitment and significant contribution over the past three years. We are excited to work with Hg, tapping into their deep experience and track record in working with technology companies, to help us achieve our vision around the digitalisation of the freight industry, whilst also delivering the best solutions for our customers and global network.”